EIC - Eagle Point Income: Common Shares Yield 15% 7.5% Yield On Preferred Shares
2024-03-23 11:40:00 ET
Summary
- Eagle Point Income reported strong Q4 results with net investment income of $5.55M.
- The company issued new shares, reducing concerns about the asset coverage ratio for the term preferred shares.
- The 2026 term preferred shares offer a pro forma yield to maturity of approximately 7.5-7.6%, making them an appealing investment.
Introduction
Eagle Point Income ( EIC ) is an investment company focusing on CLO debt, and as explained in a previous article, Steven Bavaria is an authority on this sector and I would strongly recommend you to read some of his older articles. This October 2022 article is perhaps 18 months old, but still explains very well how you should look at CLO debt. I have a long position in EIC’s common shares, but I have a much larger position in the 2026 term preferred shares ( EICA ) where the yield to maturity is quite appealing given the additional layer of safety....
Eagle Point Income: Common Shares Yield 15%, 7.5% Yield On Preferred Shares